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Plan taking shape to replace Cincinnati bridge

Bond/toll proposal would bypass need for legislative or voter approval

View SlideshowRequest to buy this photoFile photosThe Brent Spence Bridge was designed in 1959 and opened in 1963. It carries I-71/75 across the Ohio River, connecting Cincinnati and its northern Kentucky suburbs. Traffic is double the intended capacity, creating miles-long backups.

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Two Cincinnati-area economic-development agencies are quietly advancing an idea that could
unlock hundreds of millions of dollars for a new I-71/75 bridge over the Ohio River — possibly
without new legislation.

The idea, unprecedented in the region, would almost certainly rely on tolls to repay debt
incurred by the agencies to help build a $2.5 billion bridge to replace the Brent Spence
Bridge.

The Port of Greater Cincinnati Development Authority and the Northern Kentucky Port Authority
think they can partner in a financing plan to get the project started where government bureaucracy
has failed.

State law, they say, empowers the Cincinnati port to issue revenue bonds that would pay for at
least part of the project and could be repaid through fees charged to bridge users. Neither voter
nor legislative approval appears to be needed, they say.

“It looks promising, certainly,” said Roger Peterman, chairman of the Northern Kentucky Port
Authority. “We’ve formulated this preliminary idea, and now let’s go see if we can pursue this
more.”

Building a bridge is considered a priority for regional economic development because the span
provides a vital route for Cincinnati-area commuters and carries some of the heaviest freight
traffic in the nation.

No one disputes that a new bridge is needed. The 49-year-old Brent Spence Bridge is “
functionally obsolete” because of its narrow lanes, lack of emergency shoulders and limited
visibility on the lower deck. The Kentucky-owned bridge carries double its intended traffic
capacity, creating miles-long backups at a time when the region is demanding efficient
transportation to compete for business and jobs.

Ohio, Kentucky and federal officials have been discussing for years how to raise money to build
a replacement bridge. But federal funding has not been guaranteed because of the elimination of
earmarks in Congress and lagging gas-tax revenue. And local funding — typically 20 percent of the
total for a major infrastructure project — has been stalled by the lack of a financing agreement in
the Kentucky legislature, mainly by northern Kentucky legislators opposed to tolls.

Meanwhile, the cost of construction increases by the day, supporters of a new bridge say.

To break the logjam, Cincinnati’s port has been exploring since February using its powers to get
the project moving. Last summer, port President Laura Brunner approached Peterman about legal and
financial options of the agencies’ potential involvement.

A preliminary idea calls for the Cincinnati port to play the lead role. That could allow the
port to raise money to build and manage the bridge. According to 2011 U.S. Department of
Transportation statistics, 31 of the nation’s 34 interstate-system toll bridges and tunnels are
operated by independent authorities.

Under the local port’s preliminary plan, a significant portion of the Brent Spence project
probably would be funded through revenue bonds, which could be repaid through tolls paid by users
of the new bridge. Federal and state dollars still would be expected to cover a significant
cost.

The port’s goal would be to use excess toll revenue — if available after debt-service payments
and maintenance costs — to fund other economic-development projects in the region. Other regional
authorities, such as the Port Authority of New York & New Jersey, which manages toll bridges
and tunnels in New York City, do that.

“The port does not have an official position on tolls, but I don’t know how a project of this
size can move ahead without tolls,” Brunner said.

No formal financing proposal has been developed, and it’s uncertain whether taxpayers would be
on the hook if loans defaulted. Officials of the ports plan to meet soon with officials of the Ohio
and Kentucky transportation departments, which maintain overall supervision of the project.

Spokesmen for the Ohio Department of Transportation and Kentucky Transportation Cabinet said the
states are willing to listen to the ports. Since John Kasich was elected governor in 2010, ODOT has
aggressively pursued innovative financing options for infrastructure projects.

The Cincinnati port authority plans to ask ODOT to include the port’s plan in a study under way
by HNTB, a leading engineering firm on toll projects. The study is exploring finance options,
including tolling, and is expected to be used to develop a formal financing plan for the
project.

Kasich and Kentucky Gov. Steve Beshear — both of whom favor tolls on the bridge — are expected
to sign a memorandum of understanding next month saying they agree to work together.

Plenty of questions have to be answered. Chief among them: Would the Kentucky legislature go
along with the port authorities’ plan? And could the legislature stop the port if it
disapproves?

Northern Kentucky legislators aren’t likely to go for it.

If tolls are involved in the port’s plans, Kentucky state Rep. Arnold Simpson, D-Covington, said
he expects the northern Kentucky delegation to fight it.

“Unless the port authorities’ plan is (legally) crystal clear, I don’t think we’d be doing our
jobs if we permit this,” said Simpson, whose district includes the bridge.